U.S. finalizes $6.1B+ Chips Act funding with Micron

The U.S. Department of Commerce has finalized one of its largest awards to date with memory chipmaker Micron Technology (NASDAQ:MU), the White House said in a statement on Tuesday.

The Boise, Idaho-based company had announced a preliminary memorandum of terms with the Department in April for up to ~$6.14B in direct funding under the CHIPS and Science Act.

The $6.1B+ award finalized today will support the construction of two fabs in Clay, New York, and one fab in Boise, Idaho as part of Micron’s (MU) total $125B investment across both states over the next two decades.

Additionally, the commerce department has agreed to preliminary terms with Micron (MU) for an additional $275M investment to expand its Manassas, Virginia facility and onshore a critical technology relied upon by the country’s defense industry, automotive sector, and national security community.

The CHIPS Act provides for $39B in grants, billions more in loans and 25% tax credits to boost domestic chip manufacturing and reduce reliance on Asia.

The commerce department has announced preliminary deals with more than 20 companies and has finalized agreements with some companies, including Taiwan Semiconductor Manufacturing (TSM), Intel (INTC), GlobalFoundries (GFS) and Entegris (ENTG). The Biden administration is racing to get the deals finalized before President-elect Donald Trump returns to the White House.